[2020-12-02} Most PayPal customers are willing to pay with Bitcoin

[Best_Change]

Most PayPal customers are willing to pay with Bitcoin

According to a study by Mizuho, 65% of PayPal customers are ready to pay with Bitcoin at 28 million points of sale.

One fifth of customers have already made transactions with BTC in the PayPal application.
On average, BTC traders used the service 3 times more often than other users. They have high account balances and crypto enthusiasts are showing more interest in the additional features of the service.

“Bitcoin ripping in part because PayPal and Square are buying loads of it to facilitate customer trading,” wrote Michael Santoli, senior market commentator at CNBC, who shared the report.

Source: https://forklog.com/65-oproshennyh-klientov-paypal-gotovy-ispolzovat-bitkoin-kak-platezhnoe-sredstvo/

Read more news in our Medium channel: https://medium.com/@BestChange

[cr1776]

One important point about this is IF it gets people to stay in crypto instead of converting back to fiat.  A buys from B and B just keeps the crypto and then uses it to buy from C, D, and E.  C,D, and E do similarly.

If B converts back to fiat immediately, it is better than nothing, but not much. 

[Kakmakr]

Well, the customers might be more than willing to pay with Bitcoin, but is PayPal willing to give them the opportunity to do that? They launched the option to buy Bitcoin for selected customers in the US with no option to use it as a currency, because the US government defined Crypto currencies as a Commodity. (So they need to iron out the regulatory issues, before they can offer it as a currency in any country)

PayPal might offer this as a "Payment processor service" and not as a currency... so most bitcoins would be converted back to cash, when this offer is extended to their merchant network. (Most merchants would accept Fiat currencies)

[Karartma1]

Here follows an English version of the source provided by OP (will you please refrain from sharing sources which are not in English? thanks)
https://blockchain.news/news/mizuho-securities-research-65-paypal-users-ready-use-bitcoin

It would be interesting to know the average value of the txs made by those 20% of PPers who started using bitcoin on that platform. I couldn't believe they could reach this much of adoption in a small timeframe.

[Darker45]

One important point about this is IF it gets people to stay in crypto instead of converting back to fiat.  A buys from B and B just keeps the crypto and then uses it to buy from C, D, and E.  C,D, and E do similarly.

If B converts back to fiat immediately, it is better than nothing, but not much.  

It is not possible with the current design because Paypal itself does not allow its users to send crypto from one to another even within the system. Paypal makes it clear that you can only buy, sell, hold, crypto and get familiar with it and the market.^[1] Now, if people intend to stay in crypto rather than convert back to fiat, they'd rather do it somewhere else outside Paypal.

Furthermore, Paypal also makes it clear that "when a consumer selects Cryptocurrency as the funding source, the Cryptocurrency will be instantly converted to fiat currency and the transaction will be settled with the PayPal merchants in fiat currency."^[2] So expect that no Paypal merchant will be receiving crypto payments. But then again this particular feature which allows its users to purchase using crypto will be offered in 2021.

[1] https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc
[2] https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete#:~:text=No%2C%20users%20can%20only%20fund,debit%20card%20or%20bank%20account.

[Ryker1]

Well, here is my opinion.
It is not a surprise if in a short time frame bitcoin enthusiast could use their service 3 times more compare to their other account holders for bitcoin enthusiast see PayPal as a trusted platform away from scammers and --we all know that nowadays most bitcoin holders are actively doing exchanges due to the adoption that we gained when PayPal acquired bitcoin in their services. Though there are still limitations in the services like using bitcoins as a currency that can be used as another payment option in the end the numbers will never lie and if PayPal would see it how could bitcoin increase their profit then I am sure that soon they will allow it without breaking any US law.

[cr1776]

One important point about this is IF it gets people to stay in crypto instead of converting back to fiat.  A buys from B and B just keeps the crypto and then uses it to buy from C, D, and E.  C,D, and E do similarly.

If B converts back to fiat immediately, it is better than nothing, but not much.  

It is not possible with the current design because Paypal itself does not allow its users to send crypto from one to another even within the system. Paypal makes it clear that you can only buy, sell, hold, crypto and get familiar with it and the market.^[1] Now, if people intend to stay in crypto rather than convert back to fiat, they'd rather do it somewhere else outside Paypal.

Furthermore, Paypal also makes it clear that "when a consumer selects Cryptocurrency as the funding source, the Cryptocurrency will be instantly converted to fiat currency and the transaction will be settled with the PayPal merchants in fiat currency."^[2] So expect that no Paypal merchant will be receiving crypto payments. But then again this particular feature which allows its users to purchase using crypto will be offered in 2021.

[1] https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc
[2] https://www.paypal.com/us/smarthelp/article/cryptocurrency-on-paypal-faq-faq4398?app=searchAutoComplete#:~:text=No%2C%20users%20can%20only%20fund,debit%20card%20or%20bank%20account.

Yeah, but I was responding to the headline which was dealing with the percentage of PayPal customers who were willing to pay in Bitcoin even though none of it is currently possible.  It seemed to me as if the headline was dealing with what people would like vs what currently is.

[Darker45]

~snip~

~snip~

Yeah, but I was responding to the headline which was dealing with the percentage of PayPal customers who were willing to pay in Bitcoin even though none of it is currently possible.  It seemed to me as if the headline was dealing with what people would like vs what currently is.

I agree. So I guess the clamor is for them to have a number of options with what to do with their cryptocurrencies rather than just buy and sell with Paypal alone. For sure, those Paypal users who haven't heard of Bitcoin previously before the announcement but exerted a little effort to try to learn what Bitcoin basically is after that must have been a bit confused and surprised that the Bitcoin they read about somewhere else is not the same Bitcoin which is now supported by Paypal.

Because of this, I think this current design is just initial. It will eventually change into that which more or less corresponds with the basic philosophies and features of Bitcoin. Or so I hope.

[davis196]

Most PayPal customers might be willing to pay with Bitcoin,but the real question is whether or not PayPal,as a corporation is willing to REALLY accept cryptocurrency payments?
Allowing your customers to buy cryptocurrencies,which can't be moved outside of their PayPal accounts doesn't seem like a real crypto adoption to me.
All the hype about PayPal getting more crypto friendly seems to fade away slowly,because PayPal is not a predictable and trustworthy corporation.

[bbc.reporter]

That is only another hype and pump article from bitcoin news media and the larpers. Why would Paypal users risk the dump and lose their buying power if they only want to pay for something? Paypal is good for making payments in fiat already.

[sanjusajan]

Yes , sure because bitcoin is growing most fast in the market and it has come in first rank and it is steel remaining in first ,innfeature it will be in first and so many people are using it and paypal is also most popular wallet in the world .it will help to those people who are using bitcoin to make their transaction  quick and easy.

[TalkStar]

Most PayPal customers might be willing to pay with Bitcoin,but the real question is whether or not PayPal,as a corporation is willing to REALLY accept cryptocurrency payments?
Allowing your customers to buy cryptocurrencies,which can't be moved outside of their PayPal accounts doesn't seem like a real crypto adoption to me.
All the hype about PayPal getting more crypto friendly seems to fade away slowly,because PayPal is not a predictable and trustworthy corporation.

In some point it seems to me that Paypal are are taking the most outcomes from their recent bitcoin related articles. It looks like they are making their own marketing through bitcoin related news which is definitely giving them much pace on their own business development  rather than bitcoin. Its was expected that a good number of their user will be interested to pay with bitcoin and the number will grow in the upcoming days. Its pretty much clear to everyone that after making the announcement of adding bitcoin payment option on their platform worldwide people are talking too much about Paypal which is the main turning point of their own business. Through this old bitcoin users are planning to use Paypal and paypal is getting massive amount of registrants from crypto space.

Its not like that only bitcoin users are getting benefit from the step which taken by paypal where actually Paypal authority is introducing their business with crypto oriented large community.   

[bryant.coleman]

It doesn't make any sense. When you make "Bitcoin payments" with PayPal, the actual payment is done in fiat currency. The merchant will be receiving their funds in USD or some other fiat currency. In the unlikely scenario of PayPal allowing making Bitcoin payments, using wallets outside its platform, then we can say that the payments are being done with Bitcoin. But as things stand, the "PayPal Bitcoin" is not exactly Bitcoin.

[buwaytress]

It doesn't make any sense. When you make "Bitcoin payments" with PayPal, the actual payment is done in fiat currency. The merchant will be receiving their funds in USD or some other fiat currency. In the unlikely scenario of PayPal allowing making Bitcoin payments, using wallets outside its platform, then we can say that the payments are being done with Bitcoin. But as things stand, the "PayPal Bitcoin" is not exactly Bitcoin.

I think this has more to do with PayPal's intent (so it appears) to create actual Bitcoin wallets within the platform, so determining the demand for on-chain transactions will help push that decision on.

You're absolutely right it's not YET Bitcoin payments, but this is probably true for most Bitcoin payments today, anyway.

[bbc.reporter]

@buwaytress. It might be not yet or this might only be a marketing pump by Paypal. However, if Paypal becomes the most accepted and most adopted processor for bitcoin payments not made on the blockchain, does this imply that we do not need the Lightning network?

[Vishnu.Reang]

I think this has more to do with PayPal's intent (so it appears) to create actual Bitcoin wallets within the platform, so determining the demand for on-chain transactions will help push that decision on.

You're absolutely right it's not YET Bitcoin payments, but this is probably true for most Bitcoin payments today, anyway.

In case they create Bitcoin wallets for each user, then it may help to eradicate most of the criticism they are facing right now. But I would rather say that the criticism is unfounded. For most people, it doesn't matter. Obviously we always say that as long as we don't have the private keys, those are not our coins. But for the less tech savvy people out there, this is exactly how they want to deal with Bitcoin. Also, other Bitcoin payment processors such as BitPay are doing the same.

[buwaytress]

In case they create Bitcoin wallets for each user, then it may help to eradicate most of the criticism they are facing right now. But I would rather say that the criticism is unfounded. For most people, it doesn't matter. Obviously we always say that as long as we don't have the private keys, those are not our coins. But for the less tech savvy people out there, this is exactly how they want to deal with Bitcoin. Also, other Bitcoin payment processors such as BitPay are doing the same.

I think it's a natural progression. That criticism was never unfounded, by the way, it's right to criticise how these big companies are seemingly giving people exposure to Bitcoin without really giving them the true benefits of actually owning and using it. But you're right that it doesn't matter and won't matter to most -- but when it does begin to matter, they should be allowed to make that decision to have true ownership. And we'll get there. Eventually.